SoftBank reported a sharp profit jump in results published Wednesday, with gains on its OpenAI stake driving the numbers higher. [1, 2, 3, 4, 5]
The Japanese tech investor said full-year net profit reached 5 trillion yen, or about $31.6 billion to $31.7 billion, while quarterly net income came to ¥1.83 trillion, or about $11.6 billion. [1, 2, 3, 4, 5]
SoftBank’s OpenAI-related gains were about $45 billion, and those paper profits outweighed losses or softer performance in other parts of the portfolio, including the Vision Fund. [6, 3, 4, 5]
The results came after OpenAI closed a funding round in March co-led by SoftBank and was valued at $852 billion. SoftBank has committed more than $60 billion to OpenAI, with more than $30 billion already invested, and plans to lift that total to $64.6 billion by the end of the year. [2, 6, 4, 5]
SoftBank has also been selling some holdings and taking on financing to support the OpenAI bet, as Masayoshi Son makes artificial intelligence the core of his strategy. The reports said the investment has helped boost confidence in his AI wagers. [7, 2, 6, 3, 4, 5]
Richard Kaye, co-head of Japan equity strategy at Comgest Asset Management, said, “It’s very difficult for any of the global mega-tech companies to diversify their bets between competing players.” He added, “SoftBank is not really any different in that sense.” [4]
Rising competition from Google and Anthropic is adding pressure around OpenAI’s market position, even as SoftBank deepens its commitment. [7, 3, 4, 5]
